IA
Iowa House Bill HSB60

Iowa 2023-2024 Regular Session

Iowa House Bill HSB60

Introduced
1/20/23  
Introduced
1/20/23  

Caption

A bill for an act relating to the sales tax imposed on amusement devices.(See HF 276, HF 2625.)

Impact

If enacted, HSB60 will directly affect the state's sales tax regulations regarding amusement devices. By exempting prize-related sales from taxation, the bill could potentially enhance the profitability of businesses operating these devices, making them more attractive for investment. This change may lead to increased economic activity as entertainment venues adjust their pricing structures and marketing strategies to capitalize on the new tax structure. However, it may also result in reduced tax revenue for the state, necessitating careful consideration of the long-term fiscal implications.

Summary

House Study Bill 60 (HSB60) proposes to modify the sales tax imposed on the operation of amusement devices in the state of Iowa. Specifically, the bill seeks to exempt from sales tax the portion of sales derived from prizes paid out during the operation of such devices. As a result, this measure aims to encourage the operation of amusement devices by reducing the overall tax burden associated with their revenues, particularly for operators who provide games of chance and skill, as well as various amusement devices such as pinball machines and bowling alleys.

Contention

Notable points of contention surrounding HSB60 include concerns from some lawmakers regarding the impact on state revenues. Critics may argue that while the exemption supports amusement device operators, it could adversely affect the state budget, especially if such devices draw significant patronage that would otherwise contribute to tax revenues. Supporters of the bill contend that the economic benefits—such as job creation in the entertainment sector and increased consumer spending—outweigh the potential losses in state revenue. The tension between supporting local businesses and maintaining a robust tax base is expected to dominate the discussions as the bill progresses through the legislative process.

Companion Bills

IA HF276

Replaced by A bill for an act relating to the sales tax imposed on amusement devices.(Formerly HSB 60; See HF 2625.)

IA HF2625

Replaced by A bill for an act relating to the sales tax imposed on amusement devices.(Formerly HF 276, HSB 60.)

Previously Filed As

IA HF276

A bill for an act relating to the sales tax imposed on amusement devices.(Formerly HSB 60; See HF 2625.)

IA HF2625

A bill for an act relating to the sales tax imposed on amusement devices.(Formerly HF 276, HSB 60.)

IA HSB236

A bill for an act relating to the sales tax imposed on amusement devices.

IA HF498

A bill for an act eliminating the state sales and use taxes and including effective date provisions.

IA HF376

A bill for an act relating to water quality by increasing the sales and use tax rates and conditioning the use of moneys from the natural resources and outdoor recreation trust fund, and including effective date provisions.

IA HB2724

FAMILY AMUSEMENT WAGERING ACT

IA HB5832

FAMILY AMUSEMENT WAGERING

IA HF457

A bill for an act exempting the sales price of honey bees from the state sales and use tax.(See HF 676, HF 2627.)

IA HF676

A bill for an act exempting the sales price of honey bees from the state sales and use tax.(Formerly HF 457; See HF 2627.)

IA HSB187

A bill for an act relating to state and local finance and the administration of the tax and related laws by the department of revenue, and including effective date, applicability, and retroactive applicability provisions.(See HF 715.)

Similar Bills

No similar bills found.